Directive No. 02/2002/CT-BTC on organizing and implementing the budget accounting and financial system for communes

DIRECTIVE

OF THE MINISTER OF FINANCE NUMBER 02/2002/CT-BTC
MARCH 5, 2002 ON THE ORGANIZATION AND IMPLEMENTATION
OF THE SYSTEM OF STATE BUDGET ACCOUNTING AND LOCAL FINANCIAL MANAGEMENT

In order to strengthen budget management and financial work, expand autonomy and enhance the responsibility of grassroots administrative units (communes, wards, towns) in economic development, on December 21, 2001, the Minister of Finance signed Decision No. 141/2001/QĐ-BTC promulgating the system of state budget accounting and local financial management to replace the previous commune state budget accounting system. To ensure that the system of state budget accounting and local financial management is implemented uniformly, consistently, and effectively nationwide, contributing to enhancing the capacity, competence, and responsibility for financial-budgetary management of commune financial accountants, the Minister of Finance instructs the heads of units under and directly subordinate to the Ministry of Finance, Directors of Provincial Departments of Finance and Prices to urgently implement the following tasks:

1/ The Directors of Provincial Departments of Finance and Prices have the responsibility to advise the Party committees and governments at all levels to fully understand the significance and importance of state budget accounting and local financial management; they are responsible for reporting and seeking guidance from the Provincial Party Committees and People's Councils regarding the plans and contents for implementing the system of state budget accounting and local financial management; they must proactively coordinate with financial agencies on their respective territories (State Treasury, Tax Department) to develop plans and organize training sessions to implement the system of state budget accounting and local financial management down to each account holder and grassroots financial accountants.

- The implementation of the system of state budget accounting and local financial management must focus on the basic and main aspects of revenue and expenditure management through the State Treasury; expenditure control and provisions of the accounting system for state budget and local financial management.

- Based on specific conditions of the locality, appropriate forms of training should be arranged to ensure effectiveness and practicality, helping account holders and grassroots financial accountants fully understand and grasp the new contents and regulations on financial-accounting management at the commune level; simultaneously resolving and addressing any difficulties arising or likely to arise in financial-budgetary management at the grassroots level. By the second quarter of 2002, provinces and centrally-administered cities must complete training for grassroots financial accountants and submit preliminary reports to the Ministry of Finance before June 30, 2002.

2/ On the basis of training results and actual situations, the Directors of Local Departments of Finance and Prices have the duty to guide and coordinate with the Party committees and governments at the grassroots level to organize evaluations and classify objects according to the accounting proficiency of each commune, ward, town, applying suitable accounting methods. At the same time, they must guide and direct district finance departments to arrange and train accountants in accordance with the regulations of the system of state budget accounting and local financial management.

3/ The General Director of the Central State Treasury is responsible for guiding the State Treasuries of provinces and centrally-administered cities to organize training for the system of state budget accounting and local financial management for county-level State Treasury staff to facilitate timely reflection of commune revenue and expenditure situations, ensuring comprehensive tracking and consolidation of commune budgets into the state budget.

4/ During the implementation of the system of state budget accounting and local financial management, the heads of financial agencies at all levels in localities must regularly inspect and supervise the implementation of the accounting system in communes, wards, towns, promptly identifying any difficulties to report to the Provincial Departments of Finance and Prices for guidance on handling and summarizing to the Ministry of Finance for consideration and resolution of any issues exceeding their authority.

5/ The General Director of the State Treasury, the Heads of the Accounting System Department, the National Budget Department, the Information Technology Application Management Department, and the Director of the Office of the Ministry are responsible for monitoring, urging, and periodically (quarterly, annually) reporting to the Minister on the results of implementing the system of state budget accounting and local financial management as stipulated in this directive.